The business behind the show

Zediva agrees to pay $1.8 million to studios, ending legal brawl

October 28, 2011 | 4:12
pm

A federal judge has issued a permanent injunction against Zediva, the controversial video-on-demand service that incurred the wrath of Hollywood earlier this year.

Zediva's operators also agreed to pay $1.8 million to the six studios that sued the parent company of Zediva in April, according to a statement from the Motion Picture Assn. of America. The suit alleged that the Santa Clara firm illegally streams movies to its customers without obtaining required licenses from the studios.

The service offers 14 rentals of newly released DVDs for $2 per movie, or $1 for an order of 10 films, significantly less than what cable companies charge for on-demand services.

“We are pleased that this case ended with a court order permanently ending Zediva’s infringement,” MPAA Associate General Counsel Dan Robbins said in a statement. “This result sends a strong message to those who would exploit the studios’ works in violation of copyright law, on the Internet or elsewhere, and it is an important victory for the more than two million American men and women whose livelihoods depend on a thriving film and television industry.”